How do I compare shoe store franchise opportunities?

Two shoe franchises can look alike on the surface and still work very differently day to day. The difference often lies in who decides what is on the shelves, who bears the cost of what does not sell, and how close the next store is allowed to be. A fair comparison starts with the same list of questions, put to each franchisor in turn.

Brands and buying

Ask whether the franchisor chooses the brand mix, or whether you do. Ask who places the orders, who owns the stock on the shelf, and how the franchisor treats a line that fails to sell. A store with little say in what it carries may gain easier ordering but give up the chance to respond to its own customers. Neither is right for everyone.

Markdowns, returns and seasons

Footwear leaves unsold pairs at the end of each season. Ask what help the franchisor gives with clearing them, whether any stock can go back to the brand, and what support exists for slow periods. Ask for the written terms, and have your lawyer explain how they work. Vague promises about support are worth turning into specifics.

Territory and online sales

Find out what protects your area from another outlet of the same brand, and how online sales by the franchisor affect your store. Ask whether online orders can be picked up or returned in store, and who benefits when they are. Visit nearby outlets of the brand yourself and see how busy they are.

Talk to existing franchisees

• Ask what surprised them after opening.
• Ask how quickly the franchisor answers problems.
• Ask whether they would join again, knowing what they know.
• Speak to some who left, as well as those still in the system.